Saudi Arabia will raise oil production only when the market justifies it, the kingdom's oil minister said today, in response to President Bush's request that OPEC nations increase output to reduce world oil prices.
"Our interest is to keep oil supplies matching demand with minimum volatility in the oil market," Oil Minister Ali Naimi told reporters. "We will raise production when the market justifies it. This is our policy."...
"When consumers have less purchasing power, it could cause the economy to slow down," Bush said. "I hope OPEC nations put more supply on the market," he added. "It would be helpful."
Naimi said the U.S. economy is significant to the oil market and demand and no one wants to see a recession in the United States.
"I'm sure no one will look with pleasure on a recession in the U.S. On the contrary, all our effort is to maintain prosperity and growth in all countries particularly the number one consuming nation in the world," he said. "The concern for the U.S. economy is valid, but what affects the U.S. economy is more than the supply of oil."
Markets work, centralling doesn't.
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